Demand for mortgages increased in Q2.

The last quarter showed an increased demand for mortgages according to the Bank of England.

In its recently published Q2 survey, availability of credit to households increased for both mortgages and loans. According to the Bank availability is expected to increase further Q3.

UK lenders have reported that lending demand for house purchase increased significantly in Q2 which was felt to reflect the pick-up in house purchase prior to the end of the stamp duty concession.

Demand for buy-to-let mortgage lending did not change, which has come as a surprise owing to the increased popularity of investment property purchase among existing and first time landlords.

Buy to let has for a while been considered as the means to kick start the property market. Rental yields are providing attractive investment opportunities and lenders have re-acted by releasing more competitive buy to let deals.

The Bank of England warned that the increased cost of funding for mortgages would continue to be passed onto home-owners in the form of rising mortgage rates. However since this initial warning over £100 billion has been allocated by the Government and Bank of England for cheap funding for both mortgages and small business. 

During the last quarter loan to value levels fell, with first time buyers once again facing restricted access to competitive deals.

The hope is cheap funding combined with falling Libor and swap rates could mean lenders may pass on the benefit of reduced costs to customers.

Those would-be buyers looking for a deal are advised to contact Deal Direct for a competitive mortgage offer, we will source a cheap mortgage for you.

For the cheapest mortgages on offer call one of our advisers today.